Sustainability performance

Science-based carbon reduction target (SBT): achieve net zero emissions across the value chain by 2040

• Near-term target: reduce absolute Scope 1,2 and 3 GHG emissions by 47% by 2030 from a FY20 baseline
• Long-term target: reduce absolute Scope 1, 2 and 3 GHG emissions by 90% by 2040 from a FY20 baseline

33% absolute carbon reduction

SDG 13: Climate Action

Reduce average upfront embodied carbon by 50% compared with a typical building by 2030 by prioritising asset retention where possible, smart design and using sustainable materials

39% average upfront embodied carbon reduction across development pipeline

SDG 11: Sustainable Cities and Communities

SDG 12: Responsible consumption and production

SDG 13: Climate Action

Reduce energy intensity by 52% by 2030 (for properties under our operational control for at least two years) compared with a FY20 baseline

27% energy intensity reduction

SDG 7: Affordable and clean energy

SDG 13: Climate Action

Source 85% of total energy (electricity, gas, heating and cooling) consumption from renewable sources by 2030

74% total energy from renewable sources

SDG 7: Affordable and clean energy

SDG 13: Climate Action

Ensure 100% of assets located in areas highly exposed to climate risks have adaptation measures in place

Assets located in areas highly exposed to physical risks continue to ensure adequate protection and mitigation plans are in place, including Business Continuity and Emergency Response Plans. We continue partnering with Munich Re to assess portfolio exposure to climate risks, with 6% of our portfolio identified as exposed to combined physical risks

SDG 11: Sustainable Cities and Communities

SDG 13: Climate Action

Deliver our nature strategy and associated targets across our operational assets and development schemes measuring progress against our three principles:

• Improving biodiversity in the built environment - Biodiversity net gain (BNG)
• Promoting health, well-being and community engagement - Environmental Benefits for Nature (EBN)
• Creating nature-based solutions to mitigate and adapt to climate change - Urban Greening Factor (UGF)

100% of assets under our operational control have nature action plans in place.

• Operational assets: performance against all metrics to be reported at least every 3 years with next update due in FY27. To date, we have implemented a number of actions across our portfolio, delivering against our core principles. These include planting 600 native hedgerow plants, establishing 800m² of wildflower planting across retail destinations, and creating a sand habitat on the roof of a building.
• Developments: Our latest completed project, Timber Square, has delivered large areas of intensive green roofs, incorporated architecturally integrated bird and bat boxes, and achieved a 0.3 Urban Greening Factor. We have also assessed our three most significant projects (Mayfield, Lewisham shopping centre and the O2 ) against our CNRs alignment, with progress being reported next year

SDG 11: Sustainable Cities and Communities

SDG 13: Climate Action

SDG15: Life on land

For every development, source 100% of core construction materials from ethical and sustainable sources, extending this across our full supply chain in due course

100% of core construction materials with a responsible sourcing certification

SDG 12: Responsible consumption and production

Promote reuse and circular economy principles, achieve at least 75% annual recycling rate across our portfolio and new developments, and continue sending zero operational waste to landfill

• Recycling across operations: 68%
• Recycling across new developments: 98.4%
• Operational waste sent to landfill: 0%

SDG 12: Responsible consumption and production

Deliver our water strategy and associated targets across our managed portfolio and development schemes centred on three guiding principles:

• Conservation: Eliminate unnecessary use by changing behaviour and processes. Increase harvested water by 10% by 2030 against a FY26 baseline, reducing our reliance on freshwater across our portfolio
• Efficiency: Reduce water use by adopting efficient design and technology to do ‘more with less’
• Protection: Continue to protect the local water catchment area prioritising assets located in sensitive areas

We have identified opportunities to expand and improve rainwater harvesting systems, contributing towards our overall targets. In a collaborative effort to embed these principles, all our service partners have designed bespoke water management training tailored to their specific roles. To date, over 100 service partner colleagues have already received training, strengthening water stewardship and awareness throughout our operations

SDG 6: Clean water and sanitation

SDG 12: Responsible consumption and production

From a FY20 baseline, empower 30,000 people facing barriers into employment with the skills and opportunities to enter the world of work by 2030

From a 2019/20 baseline, deliver £200 million of social value in our local communities by 2030, addressing social issues relevant to each area

• 19,049 people facing barriers supported into employment since FY20
• 4,312 people supported through Landsec Futures in FY26
• £147m of social value delivered since FY20
• £51m of social value delivered in FY26

SDG 4: Quality education

SDG 8: Decent work and economic growth

SDG 10: Reduced inequalities

We will design, develop and manage our assets and new developments to be accessible ensuring everyone feels like they belong

To support us in creating truly inclusive places this year, we partnered with industry inclusive design experts Motionspot to review our operational portfolio. Motionspot assessed 44 assets, providing insights into accessibility and inclusion across key themes from our Inclusive Design Principles including sense of belonging, accessibility and amenities and activities

SDG 11: Sustainable Cities and Communities

Actively recruit, retain and progress a diverse workforce at all levels and nurture and support diverse talent into the wider real estate industry Gender targets by 2030: 40:40:20* 

Ethnic minority representation targets by 2030:

• Board (20%)
• Executive (20%)
• Senior Leader (18%)
• Leader (18%)

* Our 40:40:20 gender diversity targets mean that we will have a minimum of 40% women and 40% men in the relevant population. 20% is flexible accounting for the small headcount and diversity beyond the gender binary

Gender diversity:

• Board: 45% female/55% Male
• Executive: 40% female/60% male
• Senior Leader: 35% female/65% male
• Leader: 42% female/58% male

Ethnicity minority representation:

• Board: 27%
• Executive: 10%
• Senior Leader: 7%
• Leader: 7%

SDG 5: Gender Equality

SDG 10: Reduced inequalities

Promote a culture which enhances Landsec colleagues’ wellbeing, having relevant policies and delivering impactful campaigns

To support an inclusive workplace culture, during the year we have:

• Launched the ‘Empowering Great Leaders’ course for line managers, incorporating case studies on neurodiversity and mental health inclusion in a team context
• Worked with Landsec Women to create new guidance for colleagues returning from maternity leave and for their managers
• Delivered sessions on recognising signs of poor mental health and accessing support through the Every Mind Matters network

SDG 3: Good Health and wellbeing

Embed health and wellbeing principles directly into our design, development and operational processes

We continue to work with specialist consultants to ensure wellbeing considerations remain integral to our assets, supporting occupiers who wish to achieve WELL certification for their own spaces. Through this approach, we continue to deliver healthy workplaces and associated services, including air quality monitoring and wellbeing focused amenities, with a strong focus on positive wellbeing outcomes for our customers and occupiers

SDG 3: Good Health and wellbeing

All Landsec colleagues to have individual objectives to support the delivery of Build well, Live well, Act well with a proportion of remuneration linked to our energy and carbon targets

We continue to include ESG metrics in the Long-Term Incentive Plan (LTIP) and Annual Bonus Plan for Executive Directors and employees

SDG 11: Sustainable Cities and Communities SDG 13: Climate Action

Build relationships with our customer base (office and brand partners), establishing partnerships to drive improved sustainability performance for mutual gain

We continue to work closely with service partners and customers to identify practical opportunities to improve energy performance across our buildings. To date, this has enabled 75 efficiency initiatives across 65 customers.

SDG 17: Partnerships for the goals

Build relationships with our strategic suppliers ensuring compliance to our Supplier Code of Conduct and enhancing sustainable practices throughout our supply chain

We continue to work with our suppliers to achieve our sustainability commitments and support positive change beyond our own business. Since publishing our Supply Chain Commitment in 2022, over 1,000 suppliers, including 98% of our strategic suppliers, have signed up

SDG 9: Industry, innovation and infrastructure

SDG 17: Partnerships for the goals

Provide safe, healthy and secure environments for those who work, visit, live and relax across our managed portfolio, maintaining ISO 45001 and BS 9997 certifications, as well as continually going beyond compliance delivering data-led and risk-prioritised improvement actions and leading the industry on fire safety

We maintained our ISO 45001 certification and BS 9997 fire-safety management-system certification, both subject to independent auditing. We continue to focus our safety improvements on areas where we can have the biggest impact, with the intention of delivering an effective and consistent standard of health, safety and wellbeing across all of our assets to the benefit of our people, partners and guests

SDG 3: Good Health and wellbeing

SDG 8: Decent work and economic growth

Ensure all colleagues have read, understood and are following our Code of Conduct and underlying policies and standards which set out how we do things building on the foundations of our purpose and values

No. of whistleblowing incidents: 2

During the year, we implemented our revised procedures for conflicts of interest and gifts and hospitality, and launched training on the failure to prevent fraud to all colleagues. We also updated our Code of Conduct to incorporate the Financial Crime Policy released in the previous year.

SDG 11: Sustainable Cities and Communities

Pay our colleagues the Real Living Wage and work with our suppliers to do the same

We continue to pay all our direct employees the Real Living Wage and encourage our suppliers to pay all those who work on our behalf the Real Living Wage.

SDG 8: Decent work and economic growth

SDG 10: Reduced inequalities